"Undoubtedly, Sam Altman's OpenAI has seen its valuation swell despite its partnership with Microsoft (NASDAQ:MSFT) running into a few bumps over the past few quarters. And while OpenAI's latest major release, ChatGPT-5, appeared to have been a fumble of sorts, I certainly wouldn't bet against the GPT maker as it looks to keep its foot on the accelerator to stay ahead of rising threats in the AI scene, most notably Alphabet (NASDAQ:GOOG), with its fast-rising Gemini model."
"With Apple's former chief design officer, Jony Ive, hard at work on a new AI product over at OpenAI, questions linger as to whether OpenAI has what it takes to leverage its current AI edge to disrupt the legendary iPhone. Not much is known about what Altman and Ive are working on, but I wouldn't be all too worried if I were Apple CEO Tim Cook, especially now that shares are looking to make up for a "lost year.""
"For now, the Apple AI criticisms may be somewhat warranted, but the headlines are getting old. I believe it's way too early to count Apple out, as the AI race may very well be won by the slow, steady mover that strives to avoid too many bumps. Personally, I think investors should give Apple at least two years to prove it can catch up in AI."
Apple is perceived as behind in AI compared with OpenAI, which gained traction with ChatGPT and faces competition from Alphabet's Gemini. OpenAI's valuation grew despite partnership tensions with Microsoft, and its recent ChatGPT-5 release underperformed yet the company continues rapid development. Jony Ive's move to OpenAI raises questions about potential disruption to the iPhone, but Apple’s leadership and share recovery reduce immediate concern. Apple’s cautious, incremental strategy could allow it to close the AI gap, and investors are advised to allow about two years for Apple to demonstrate AI competitiveness and capitalize on personalized AI.
Read at 24/7 Wall St.
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